February 22, 2001

Kansas Cattleman Pleads Guilty
A cattleman who operates the Hornung Cattle Company in Offerle, Kansas,
pled guilty on February12 to violating the Clean Water Act. During May
2000, the defendant violated his EPA permit by discharging animal waste
from a lagoon at his feed lot, knowing that the animal waste would enter
Coon Creek. The release of animal wastes into surface waters can make
them unfit for drinking and recreational uses and can harm fish and aquatic
life. When sentenced, the cattleman faces a maximum sentence of up to
three years in prison and/or a maximum fine of up to $250,000. The case
was investigated by EPA's Criminal Investigation Division and is being
prosecuted by the U.S. Attorney's Office in Kansas City.

March 8, 2001

EPA Orders Walnutdale Farms To Stop Unpermitted Discharges
EPA Region 5 recently ordered Walnutdale Farms, Inc. (Wayland, Mich.)
to stop unauthorized discharges of manure, wastewater, and cooling water
into a farm drain and subsequently into the Red Run Drain and Rabbit River.
EPA observed discharges of manure-contaminated stormwater occurring after
a precipitation event. EPA alleges that these discharges violate the Clean
Water Act.

The administrative order issued on Feb. 26 also requires
the dairy to apply to the Michigan Department of Environmental Quality
for a National Pollutant Discharge Elimination System (NPDES) permit;
stop applying manure on frozen and snow-covered ground; improve its capacity
to safely store waste; submit a stormwater pollution prevention plan to
EPA and the State; and submit a comprehensive plan to manage all wastes
at the facility, including manure, wastewater, spoiled milk, waste feed
and silage, silage leachate and dead animals.

"Discharges of manure and other wastes from feedlots
may kill fish, cause infectious diseases in people, lead to excessive
algae growth and upset the balance of life in streams and lakes,"
said Jo Lynn Traub, EPA regional Water Division director. "Permits
impose enforceable pollution control standards and management practices
on facilities to protect water quality and public health."

EPA inspected the dairy in January 2001 and determined that
it is a concentrated animal feeding operation (CAFO) because it has more
than 700 dairy cattle and discharges manure-polluted wastewater into a
farm drain and subsequently the Red Run Drain and Rabbit River. The inspection
also revealed that the facility discharges other wastewater without a
permit.

April 9, 2001

EPA Penalizes Chino Dairy $48,000 for Manure Overflow
EPA assessed the Beranna Dairy in Chino, Calif, a $48,000 penalty for
manure overflows into a tributary of the Santa Ana River, a violation
of the Clean Water Act. The EPA began investigating the dairy in
March 2000 after discovering ongoing overflows from manure lagoons into
a flood channel flowing to the Prado Dam, part of the Santa Ana River
watershed.

"If dairy manure had been properly managed and stored,
our penalty could have been avoided," said Alexis Strauss, director
of the Water Division in the EPA's Pacific Southwest Office. "Now
under a new operator, the dairy has improved maintenance at the facility
and increase holding capacity in the manure ponds to prevent future over
flows. We are most encouraged by this commitment."

This is the third penalty the EPA has levied against dairies in Chino
in the past year for manure overflows. In May 2000, the Goyenetche
Dairy was penalized $9,000 and in February 2001, the H&R Westra Dairy
was penalized $30,700. Both dairies have since improved operations
at their facilites to control manure overflows. Large dairies have
a long-standing legal obligation to store and manage liquid and solid
manure to prevent discharges to surface water during all but the most
extreme rains.

November 20, 2001

Nation's
Second Largest Hog Producer Reaches Settlement With U.S. & Citizen's
Group
EPA and the Justice Department announced that two related companies, Premium
Standard Farms (PSF) and Continental Grain Company, which together comprise
the second largest producer of hogs in the United States, have entered
into a settlement to resolve environmental violations at the companies'
large-scale farms, known as concentrated animal feeding operations (CAFOs),
in Missouri. The settlement was reached with the United States and the
Citizens Legal Environmental Action Network, a citizens group (CLEAN).

According to the consent decree, which will be lodged today in the Western
District of Missouri in Kansas City, PSF and Continental have agreed to
pay a $350,000 civil penalty (besides $650,000 previously paid to the
state of Missouri), and spend, according to EPA estimates, as much as
$50 million to develop and install cleaner wastewater treatment technologies
never before used in large-scale farm operations.

PSF's and Continental's operations in Missouri consist of more than 1,000
hog barns, 163 animal waste lagoons and 1.25 million pigs primarily located
on 21 large-scale farms in five counties. The settlement will produce
significant reduction of odorous and potentially harmful air pollutants
from their facilities and prevent spills of animal wastes that can result
in fish kills or other harm to local rivers and streams.

The decree requires PSF and Continental to develop and install wastewater
treatment technologies for CAFOs that will greatly reduce the toxicity
of the tremendous amount of animal wastes produced and the overall emissions
of odorous and potentially harmful air pollutants, substantially benefitting
human health and the environment. In addition, PSF and Continental have
agreed to reduce by at least 50 percent the nitrogen content of waste
at the larger Class 1A CAFO farms before it is land applied, and to substantially
reduce ammonia emissions. The decree requires the companies to calculate
and report on emissions from its large barns and lagoons, and to apply
to Missouri for any necessary Clean Air Act permits. Under the decree,
defendants will compile data on their current facilities' operations before
and after technological improvements have been made.

The federal decree complements a prior consent judgment negotiated by
the state of Missouri, PSF and Continental that requires defendants to
spend up to $25 million to develop "Next Generation Technology."
"This settlement is a prime example of how the federal government
can complement and enhance the work of the States to protect the environment
and the public. The consent decree is a model of how to reduce emissions
and protect human health," said Acting Assistant Attorney General
John C. Cruden.

The companies also will be required to comply with new farm management
practices designed to prevent future discharges of animal wastes and minimize
the negative impact of the facilities on local residents. Furthermore,
the companies have agreed to fund a $300,000 supplemental environmental
project to reduce air emissions and odors from swine barns.

Improper handling of manure from feedlots, lagoons and improper land
application can result in excessive nutrients (nitrogen and phosphorus);
pathogens (i.e., fecal coliform); and other pollutants in the water. This
pollution can kill fish, cause excessive algae growth, and contaminate
drinking water. Emissions of air pollutants are also of concern for nearby
residents.

"We believe this decree presents and fair, logical and reasonable
solution to a significant series of problems," said Todd P. Graves,
U.S. Attorney for the Western District of Missouri. "This decree
provides significant incentive for the defendants to make improvements
in their operations that should spur creation of new technologies that
could ultimately benefit farms of all sizes, and the quality of life for
many Missourians."

The agreement resolves claims that PSF and Continental violated numerous
requirements of the Clean Water Act, which prohibits discharges of pollutants
into waters of the United States without authorization by a permit. In
the case of permitted CAFOs, Clean Water Act regulations prohibit discharges
to navigable waters absent extraordinary circumstances. The settlement
also resolves potential claims under the Clean Air Act and other laws
addressing violations of limits on air emissions and permit and reporting
requirements. The consent decree is available for public comment for 30
days.